Correlation Between Playtika Holding and Acm Research

Can any of the company-specific risk be diversified away by investing in both Playtika Holding and Acm Research at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Playtika Holding and Acm Research into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Playtika Holding Corp and Acm Research, you can compare the effects of market volatilities on Playtika Holding and Acm Research and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Playtika Holding with a short position of Acm Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Acm Research.

Diversification Opportunities for Playtika Holding and Acm Research

-0.26

Correlation Coefficient

Playtika Holding  Acm Research

Very good diversification

The 3 months correlation between Playtika and Acm is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Acm Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acm Research and Playtika Holding is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Playtika Holding Corp are associated (or correlated) with Acm Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acm Research has no effect on the direction of Playtika Holding i.e., Playtika Holding and Acm Research go up and down completely randomly.

Pair Corralation between Playtika Holding and Acm Research

Given the investment horizon of 90 days Playtika Holding Corp is expected to under-perform the Acm Research. But the stock apears to be less risky and, when comparing its historical volatility, Playtika Holding Corp is 2.0 times less risky than Acm Research. The stock trades about -0.35 of its potential returns per unit of risk. The Acm Research is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest  1,840  in Acm Research on September 20, 2024 and sell it today you would lose (319.00) from holding Acm Research or give up 17.34% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Playtika Holding Corp  vs.  Acm Research

Playtika Holding Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Playtika Holding Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Acm Research

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Acm Research has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable primary indicators, Acm Research is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Playtika Holding and Acm Research

The main advantage of trading using opposite Playtika Holding and Acm Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding position performs unexpectedly, Acm Research can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Acm Research will offset losses from the drop in Acm Research's long position.

The idea behind Playtika Holding Corp and Acm Research pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.